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 VISIT THE ALLEN SOLLY &ENQUIRE ABOUT RE-ORDER LEVEL OF RAW MATERIAL,SAFETY  STOCK MAINTAINED, LEAD TIME TAKEN BY  THEIR SUPPLIERS & STOCK-OUT COSTS.

PRESENTED BY :- ARPANA SONI8NBCH042

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CONTENTS

OBJECTIVES

RESEARCH DESIGN CONCEPTUAL KNOWLEDGE

 ABOUT ALLEN SOLLY 

 ANALYSIS

CONCLUSION

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OBJECTIVES

o To ascertain the Re-order level of raw material,o To find out the safety stock maintained by ALLEN SOLLY,

o To find out the lead time and stock out costs during summer

& winter season.

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CONCEPTUAL KNOWLEDGE

Reorder Level :- Normal consumption during lead

time. Safety stock :- Minimum Level of inventory

maintained by company for meeting unexpected

increase in demand.

Stock out cost:- Penalty costs associated with delays inmeeting the demand .

Lead time:- Time required to procure the material by

the firm.

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o  ALLEN SOLLY was established in 1744.After men·swear,In

2002 it has entered into the women·swear &now it has

already entered into kid·swear .o The store offers certain brands for sale like peter england ,

louis philippe , van huesen etc.

o  ALLEN SOLLY, for its revolutionized concept (´Friday

dressingµ) in India received the prestigious CMAI(clothingmanufacturers associations of India) award for best

women·swear in the western wear category.

 A BOUT ALLEN SOLLY 

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 A NALYSIS(SUMMER SEASON)

 Avg. daily demand in units :- Sales per day/Avg. price of all items.:- 40000/1181 = 34 units(approx)

Lead time :- Maximum 2 days.

Reorder Level :- Avg. daily demand * Lead Time.

:- 34 units * 2 = 68 units

Reorder Point :- Reorder level + Safety Stock

:- 68 units + 610 units= 678 units.

March--- August

NOTES:-� Company normal consumption during lead time is 68 units

� Company place the order with warehouse when its level of inventory is around 678 units

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 A NALYSIS(SUMMER SEASON)

 Avg. daily demand in units :- Sales per day/Avg. price of all items.:- 40000/1181= 34units(approx)

Lead time :- Maximum 2 days.

Reorder Level :- Avg. daily demand * Lead Time.

:- 34 units * 2 = 68 units

Reorder Point :- Reorder level + Safety Stock

:- 68 units + 455 units= 523 units.

September--- October

NOTES:-

� Company normal consumption during lead time is 68 units

� Company place the order with warehouse when its level of inventory is around 523units

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ITEMS S AFETY STOCK

(MAR- AUG)

S AFETY STOCK

(SEP- OCT)

PRICE RANGE AVG. PRICE

PER ITEM.

Shirts 250 150 550- 2000 1275

T-Shirts 200 105 350- 3000 1675

Jeans 150 150 550-2500 1525

Lowers 50 30 150-350 250

TOTAL 610 455 4725/4=1181

SUMMER SEASON

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 A NALYSIS(WINTER SEASON)

 Avg. daily demand in units :- Sales per day/Avg. price of all items.:- 90000/3881 = 23 units(approx)

Lead time :- Maximum 2 days.

Reorder Level :- Avg. daily demand * Lead Time.

:- 23 units * 2 = 46 units

Reorder Point :- Reorder level + Safety Stock

:- 46 units + 245 units= 291 units.

November --- January 

NOTES:-

� Company normal consumption during lead time is 46 units

� Company place the order with warehouse when its level of inventory is around 291 units

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 A NALYSIS(WINTER SEASON)

 Avg. daily demand in units :- Sales per day/Avg. price of all items.:- 25000/3881 = 6 units(approx)

Lead time :- Maximum 2 days.

Reorder Level :- Avg. daily demand * Lead Time.

:- 6 units * 2 = 12 units

Reorder Point :- Reorder level + Safety Stock

:- 12 units + 185 units= 197 units.

1 February--- 28 February

NOTES:-

� Company normal consumption during lead time is 12 units

� Company place the order with warehouse when its level of inventory is around 197units

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ITEMS S AFETY STOCK

(NOV-JAN)

S AFETY STOCK

(FEBRUAR Y)

PRICE RANGE AVG. PRICE

PER ITEM.

Jackets 30 10 1500-6000 3750

Sweaters 40 15 1000-3000 2000

Coats 25 10 2500-14000 8250

Jeans 150 150 550-2500 1525

TOTAL 245 185 15525/4=3881

WINTER SEASON

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CONCLUSION

Stock out costs are negligible owing to the

efficient distribution system.

During off season company usually maintain less

safety stock owing to the less demand and viceversa.